Oil Forecast January 19, 2012, Technical Analysis

The Light Sweet Crude market attempted to rally for the session on Wednesday, but failed to show any amount of follow through later in the session. The $120 level held off the bullishness, and the market is starting to look weak at this point.

The $105 level is massive resistance, and we feel that the area should be a massive one to overcome if the bulls wish to push prices higher. The inability of the markets to continue higher is a poor sign, but the $95 level continues to be very supportive. The area between the two marks has a lot of noise in it, so we are not keen to trade this market yet. We need to see a break out above the $105 level in order to buy, or break below the $95 level to sell. In the mean time, we simply wait.

Oil Forecast January 19, 2012, Technical Analysis
Oil Forecast January 19, 2012, Technical Analysis

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